The Forex Market (FX Market) is an interbank currency exchange market. Forex terms are used only for currency exchange, not used for all types of currency transactions. Transactions on the currency market can be done by trading, speculative, hedging or regulation.
Thanks to the rapid development in the global internet, so the Forex market offers real opportunities for everyone to be able to start forex trading online. Only requires internet access and a trading platform.
In August 1971 US president Richard Nixon maintained a free exchange of US dollars into gold and in December 1971 the Smithsonian agreement was signed in Washington, under the agreement in addition to fluctuations in the value of 1% against the US dollar 4.5% fluctuations were allowed (because 9% of currency pairs does not involve the US dollar). This terminates the system of currency quotations that are set. This change is targeted to make policies related to gold prices become more liberal. Before the change, the value of the currency was stable because of the gold standard, however, after that the soaring gold price caused an unavoidable currency value shock. This event raises new-currency trading activities, when the exchange rate does not depend on gold equivalent to money, but the exchange rate becomes dependent on supply and demand in that currency. In January 1976, during a meeting of IMF state ministers in Kingston, a new agreement relating to the international currency system was signed in the form of an amendment to the article of the IMF agreement. Some countries refuse to classify national currency into US dollars or gold. However, only in 1978 was this officially authorized by the IMF. Since then, the value of rising currencies has become the basis for currency exchange.
The new currency system is not based on how to determine the purchasing capacity of money based on the value of equality with gold. State money – members involved in the agreement – no longer have official gold value. Exchange starts on the free currency market at flexible prices.
Building a soaring currency value system makes the central bank have the right to interfere in the value of the currency and use its influence in the economic situation in a country by applying economic steps.
Company importers, exporters and banking companies that support this system become regular participants in the currency market because the liquidity in the current currency value is shown in the results of their financial work both positively and negatively.
DAILY TURNOVER ON THE FOREX MARKET:
There is no accurate picture of daily turnover on the Forex market, because this market is Over-The-Counter (OTC) market, there is no registration and publication of data regarding transactions. In 2005-2006 the Forex market’s daily turnover changed with a different estimate of between US $ 2 and 4 trillion. Some of this turnover is obtained from marginal trading that allows market participants to enter into contracts with a sum of money that exceeds real monetary funds from the party conducting the transaction. Whatever the character and target of the transaction, a large amount of money will guarantee the high liquidity of the Forex market.
BENEFIT ON THE FOREX MARKET:
There are many advertisements on the internet about the steps to collect profits on the Forex market, however, everyone must pay attention that this job is not a full time job and does not have a fixed salary. Only you determine your salary, which depends on loss or profit. This business is about starting with capital and risks that cannot be avoided.
Marginal trading on Forex has several uniqueness: there is no career path, there is no large initial capital, transactions are the same and do not require education, potential profits and the risk of high losses. This character feature makes marginal trading attractive to start exchange rate trading with a small initial budget.
Everyone can get to know trading on the Forex market with a demo account. To do this you only have to choose a broker that you consider attractive, download the trading platform and register on a demo account. Every business can give you profits or losses. To get a profit that exceeds the losses you need to learn about the Forex market and the trading situation. As soon as you are able to observe things that apply in the currency market, you will become a successful trader.